$6B for energy initiatives in India

International Finance Corporation (IFC), a member of the World Bank Group, said on Tuesday that it will invest up to $6 billion in the next five years on various sustainable and renewable energy programs in India, of which 20 percent will go in building eco-friendly or green homes in the country, said a top company executive.

Jun Zhang, country head, IFC India said affordable and sustainable homes is a key part of the organization’s strategy in India.

In a press conference which announced the launch of an awareness program on green homes along with Sustainable Housing Leadership Consortium (SHLC), a group of real estate firms which supports green homes, Zhang said IFC has invested around $2 billion on renewable energy and climate change programs in India since 2005.

“We invest and advise housing finance companies, developers, and have also helped leading private-sector banks to issue green bonds to finance green homes. Through this first-of-its-kind multi-stakeholder consortium, we are trying to identify private-sector solutions for greener homes, “ he said.

IFC has already invested in affordable housing projects through partnerships with various leading real estate firms like Tata Housing Development Company Ltd. and Shapoorji Pallonji Real Estate Ltd.

As part of the green home campaign launched on Tuesday, SHLC along with various other stakeholders are working toward making 20 percent of India’s new homes eco-friendly by 2022. At present, around 2 percent of the existing homes are certified green buildings.

In a press statement, SHLC said it is collectively committed to making 100 percent of its new housing portfolio green, thus contributing 100 million square feet of green housing by 2020.

Anita Arjundas, managing director, Mahindra Lifespace Developers, said there’s an incremental cost of 2-3 percent on making green buildings. However, the effort is to reduce the cost by as much as possible by through initiatives and by identifying technologies, she added.

Tata Housing Development’s managing director and chief executive officer Brotin Banerjee said the consortium would tie up with various industry bodies to spread awareness about green homes across the country.